Retailers live and die by the narrowest of margins, and both UPS and FedEx have just thrown another COVID-19 curveball by increasing parcel costs. They are adding a holiday surcharge after the already added “COVID Penalty”. The carriers are claiming that they won’t have the capacity to meet desired delivery times across the board, and that shippers will be capped on the number of packages that they can ship.
Retailers face a double whammy. Not only will their eCommerce businesses be driven up 40% to 80% due to COVID, they must now also solve for both a parcel cost issue and customer delivery challenge knowing customers might pass altogether if they can’t get the product in time.
The message is act now. You still have time to act quickly and reset your plans for the holiday. The answer is to change your vendor strategy, alter your “free” shipping offers, aggressively ramp-up and incentivize BOPIS (buy online pick up in store) and/or curbside pickup, and shift promotional timing. A&M is here to help, as we have the analytical tools and supply chain experience to complete a quick diagnostic review and develop a custom plan for retailers.
Read the full article here.
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